diff --git a/app/controllers/role_overrides_controller.rb b/app/controllers/role_overrides_controller.rb
index 9e8a40923db..44345b6dd09 100644
--- a/app/controllers/role_overrides_controller.rb
+++ b/app/controllers/role_overrides_controller.rb
@@ -224,13 +224,14 @@ class RoleOverridesController < ApplicationController
   #     manage_calendar                  -- [sTADo] Add, edit and delete events on the course calendar
   #     manage_content                   -- [ TADo] Manage all other course content
   #     manage_files                     -- [ TADo] Manage (add / edit / delete) course files
-  #     manage_grades                    -- [ TA  ] Edit grades (includes assessing rubrics)
+  #     manage_grades                    -- [ TA  ] Edit grades
   #     manage_groups                    -- [ TAD ] Manage (create / edit / delete) groups
   #     manage_interaction_alerts        -- [ Ta  ] Manage alerts
   #     manage_outcomes                  -- [sTaDo] Manage learning outcomes
   #     manage_sections                  -- [ TaD ] Manage (create / edit / delete) course sections
   #     manage_students                  -- [ TAD ] Add/remove students for the course
   #     manage_user_notes                -- [ TA  ] Manage faculty journal entries
+  #     manage_rubrics                   -- [ TAD ] Edit assessing rubrics
   #     manage_wiki                      -- [ TADo] Manage wiki (add / edit / delete pages)
   #     read_forum                       -- [STADO] View discussions
   #     moderate_forum                   -- [sTADo] Moderate discussions (delete/edit others' posts, lock topics)
diff --git a/app/controllers/rubric_associations_controller.rb b/app/controllers/rubric_associations_controller.rb
index 5ffe1b1faf9..633fbc7321b 100644
--- a/app/controllers/rubric_associations_controller.rb
+++ b/app/controllers/rubric_associations_controller.rb
@@ -32,7 +32,7 @@ class RubricAssociationsController < ApplicationController
     rubric_id = params[:rubric_association].delete(:rubric_id)
     @rubric = @association ? @association.rubric : Rubric.find(rubric_id)
     # raise "User doesn't have access to this rubric" unless @rubric.grants_right?(@current_user, session, :read)
-    if !@association && !authorized_action(@context, @current_user, :manage_grades)
+    if !@association && !authorized_action(@context, @current_user, :manage_rubrics)
       return
     elsif !@association || authorized_action(@association, @current_user, :update)
       if params[:rubric] && @rubric.grants_rights?(@current_user, session, :update)[:update]
diff --git a/app/controllers/rubrics_controller.rb b/app/controllers/rubrics_controller.rb
index 46af1886004..2f5c62b6390 100644
--- a/app/controllers/rubrics_controller.rb
+++ b/app/controllers/rubrics_controller.rb
@@ -61,7 +61,7 @@ class RubricsController < ApplicationController
     params[:rubric_association].delete(:invitations)
     @association_object = RubricAssociation.get_association_object(params[:rubric_association])
     params[:rubric][:user] = @current_user if params[:rubric]
-    if (!@association_object || authorized_action(@association_object, @current_user, :read)) && authorized_action(@context, @current_user, :manage_grades)
+    if (!@association_object || authorized_action(@association_object, @current_user, :read)) && authorized_action(@context, @current_user, :manage_rubrics)
       @association = @context.rubric_associations.find_by_id(params[:rubric_association_id]) if params[:rubric_association_id].present?
       @association_object ||= @association.association if @association
       params[:rubric_association][:association] = @association_object
diff --git a/app/models/role_override.rb b/app/models/role_override.rb
index 1bf8c42e16f..cff279922c0 100644
--- a/app/models/role_override.rb
+++ b/app/models/role_override.rb
@@ -301,7 +301,7 @@ class RoleOverride < ActiveRecord::Base
         ]
       },
       :manage_grades => {
-        :label => lambda { t('permissions.manage_grades', "Edit grades (includes assessing rubrics)") },
+        :label => lambda { t('permissions.manage_grades', "Edit grades") },
         :available_to => [
           'TaEnrollment',
           'TeacherEnrollment',
@@ -314,6 +314,22 @@ class RoleOverride < ActiveRecord::Base
           'AccountAdmin'
         ]
       },
+      :manage_rubrics => {
+          :label => lambda { t('permissions.manage_rubrics', "Create and edit assessing rubrics") },
+          :available_to => [
+              'TaEnrollment',
+              'DesignerEnrollment',
+              'TeacherEnrollment',
+              'AccountAdmin',
+              'AccountMembership'
+          ],
+          :true_for => [
+              'DesignerEnrollment',
+              'TaEnrollment',
+              'TeacherEnrollment',
+              'AccountAdmin'
+          ]
+      },
       :comment_on_others_submissions => {
         :label => lambda { t('permissions.comment_on_others_submissions', "View all students' submissions and make comments on them") },
         :available_to => [
diff --git a/app/models/rubric.rb b/app/models/rubric.rb
index 497b1c316bb..30cd47d1226 100644
--- a/app/models/rubric.rb
+++ b/app/models/rubric.rb
@@ -47,7 +47,7 @@ class Rubric < ActiveRecord::Base
   }
   
   set_policy do
-    given {|user, session| self.cached_context_grants_right?(user, session, :manage_grades)}
+    given {|user, session| self.cached_context_grants_right?(user, session, :manage_rubrics)}
     can :read and can :create and can :delete_associations
     
     given {|user, session| self.cached_context_grants_right?(user, session, :manage_assignments)}
@@ -60,13 +60,13 @@ class Rubric < ActiveRecord::Base
     given {|user, session| !self.read_only && self.rubric_associations.for_grading.length < 2 && self.cached_context_grants_right?(user, session, :manage_assignments)}
     can :update and can :delete
     
-    given {|user, session| !self.read_only && self.rubric_associations.for_grading.length < 2 && self.cached_context_grants_right?(user, session, :manage_grades)}
+    given {|user, session| !self.read_only && self.rubric_associations.for_grading.length < 2 && self.cached_context_grants_right?(user, session, :manage_rubrics)}
     can :update and can :delete
 
     given {|user, session| self.cached_context_grants_right?(user, session, :manage_assignments)}
     can :delete
     
-    given {|user, session| self.cached_context_grants_right?(user, session, :manage_grades)}
+    given {|user, session| self.cached_context_grants_right?(user, session, :manage_rubrics)}
     can :delete
 
     given {|user, session| self.cached_context_grants_right?(user, session, :read) }
diff --git a/app/models/rubric_assessment.rb b/app/models/rubric_assessment.rb
index bc45dabf749..525a994ac9b 100644
--- a/app/models/rubric_assessment.rb
+++ b/app/models/rubric_assessment.rb
@@ -161,7 +161,7 @@ class RubricAssessment < ActiveRecord::Base
     given {|user, session| 
       self.rubric_association && 
       self.rubric_association.grants_rights?(user, session, :manage)[:manage] &&
-      (self.rubric_association.association.context.grants_right?(self.assessor, nil, :manage_grades) rescue false)
+      (self.rubric_association.association.context.grants_right?(self.assessor, nil, :manage_rubrics) rescue false)
     }
     can :update
   end
diff --git a/db/migrate/20130215164701_add_manage_rubrics_permission.rb b/db/migrate/20130215164701_add_manage_rubrics_permission.rb
new file mode 100644
index 00000000000..751b41f5e47
--- /dev/null
+++ b/db/migrate/20130215164701_add_manage_rubrics_permission.rb
@@ -0,0 +1,12 @@
+class AddManageRubricsPermission < ActiveRecord::Migration
+  tag :predeploy
+
+  def self.up
+    DataFixup::CopyRoleOverrides.send_later_if_production_enqueue_args(:run,
+      {:priority => Delayed::LOW_PRIORITY, :max_attempts => 1},
+      :manage_grades, :manage_rubrics)
+  end
+
+  def self.down
+  end
+end
diff --git a/lib/data_fixup/copy_role_overrides.rb b/lib/data_fixup/copy_role_overrides.rb
new file mode 100644
index 00000000000..1a233c87d2b
--- /dev/null
+++ b/lib/data_fixup/copy_role_overrides.rb
@@ -0,0 +1,24 @@
+module DataFixup::CopyRoleOverrides
+  def self.run(old_permission, new_permission)
+    RoleOverride.scoped(:conditions => {:permission => old_permission.to_s}).find_in_batches do |old_role_overrides|
+      possible_new_role_overrides = RoleOverride.find(:all, :conditions =>
+        {:permission => new_permission.to_s, :context_id => old_role_overrides.map(&:context_id)} )
+
+      old_role_overrides.each do |old_role_override|
+        unless old_role_override.invalid? || possible_new_role_overrides.detect{|ro|
+          ro.context_id == old_role_override.context_id &&
+          ro.context_type == old_role_override.context_type &&
+          ro.enrollment_type == old_role_override.enrollment_type
+        }
+
+          dup = RoleOverride.new
+          old_role_override.attributes.delete_if{|k,v| [:id, :permission, :created_at, :updated_at].include?(k.to_sym)}.each do |key, val|
+            dup.send("#{key}=", val)
+          end
+          dup.permission = new_permission.to_s
+          dup.save!
+        end
+      end
+    end
+  end
+end
diff --git a/spec/migrations/add_manage_rubrics_permission_spec.rb b/spec/migrations/add_manage_rubrics_permission_spec.rb
new file mode 100644
index 00000000000..870c401af57
--- /dev/null
+++ b/spec/migrations/add_manage_rubrics_permission_spec.rb
@@ -0,0 +1,41 @@
+require File.expand_path(File.dirname(__FILE__) + '/../spec_helper.rb')
+require 'db/migrate/20130215164701_add_manage_rubrics_permission.rb'
+
+describe "AddManageRubricsPermission" do
+  it "will copy role overrides for the new permission" do
+    accounts = []
+    4.times do
+      accounts << account_model(:parent_account => Account.default)
+    end
+
+    enrollment_types = ['TeacherEnrollment', 'TaEnrollment', 'AccountAdmin', 'AccountMembership']
+    bool = true
+
+    role_overrides = []
+    accounts.each do |account|
+      enrollment_types.each do |enrollment_type|
+        role_overrides << RoleOverride.create!(:context => account, :permission => 'manage_grades',
+          :enrollment_type => enrollment_type, :enabled => bool)
+        bool = !bool
+      end
+    end
+
+    AddManageRubricsPermission.up
+
+    new_role_overrides = RoleOverride.find(:all, :conditions => {:permission => 'manage_rubrics'})
+
+    role_overrides.count.should == new_role_overrides.count
+    role_overrides.each do |old_role_override|
+      new_role_override = new_role_overrides.find{|ro|
+        ro.context_id == old_role_override.context_id &&
+        ro.context_type == old_role_override.context_type &&
+        ro.enrollment_type == old_role_override.enrollment_type
+      }
+      new_role_override.should_not be_nil
+
+      new_role_override.attributes.delete_if{|k,v| [:id, :permission, :created_at, :updated_at].include?(k.to_sym)}.should ==
+        old_role_override.attributes.delete_if{|k,v| [:id, :permission, :created_at, :updated_at].include?(k.to_sym)}
+    end
+
+  end
+end
diff --git a/spec/selenium/assignments_rubrics_spec.rb b/spec/selenium/assignments_rubrics_spec.rb
index f66b27d2118..cd45ed42344 100644
--- a/spec/selenium/assignments_rubrics_spec.rb
+++ b/spec/selenium/assignments_rubrics_spec.rb
@@ -276,20 +276,18 @@ describe "assignment rubrics" do
       course_with_designer_logged_in
     end
 
-    it "should allow an designer to create a course rubric" do
-      pending "Bug #7136 - Rubrics cannot be created by designers" do
-        rubric_name = 'this is a new rubric'
-        get "/courses/#{@course.id}/rubrics"
+    it "should allow a designer to create a course rubric" do
+      rubric_name = 'this is a new rubric'
+      get "/courses/#{@course.id}/rubrics"
 
-        expect {
-          f('.add_rubric_link').click
-          replace_content(f('.rubric_title input'), rubric_name)
-          submit_form('#edit_rubric_form')
-          wait_for_ajaximations
-        }.to change(Rubric, :count).by(1)
-        refresh_page
-        f('#rubrics .title').text.should == rubric_name
-      end
+      expect {
+        f('.add_rubric_link').click
+        replace_content(f('.rubric_title input'), rubric_name)
+        submit_form('#edit_rubric_form')
+        wait_for_ajaximations
+      }.to change(Rubric, :count).by(1)
+      refresh_page
+      f('#rubrics .title').text.should == rubric_name
     end
   end
 end